BILL NUMBER: AB 99	CHAPTERED  10/10/99

	CHAPTER   801
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 7, 1999
	PASSED THE ASSEMBLY   AUGUST 30, 1999
	PASSED THE SENATE   AUGUST 25, 1999
	AMENDED IN SENATE   AUGUST 23, 1999
	AMENDED IN SENATE   JUNE 7, 1999
	AMENDED IN ASSEMBLY   MARCH 15, 1999

INTRODUCED BY   Assembly Member Cedillo

                        DECEMBER 17, 1998

   An act to amend Sections 21573, 21574, and 21581 of, and to add
Section 21574.5 to, the Government Code, relating to the Public
Employees' Retirement System.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 99, Cedillo.  Public Employees' Retirement System:  benefits.
   The Public Employees' Retirement Law provides alternative
preretirement death benefits for members not covered by the federal
Social Security Act and prescribes specified member contribution
rates for those benefits.
   This bill would authorize contracting agencies to amend their
contracts to become subject to increased preretirement death benefits
for their employees and would revise the member contribution rate
calculation.
   This bill would incorporate additional changes to Sections 21573,
21574, and 21581 of the Government Code proposed by AB 232 and SB
400, to be operative if this bill, AB 232, and SB 400 are enacted and
become effective on or before January 1, 2000, and this bill is
enacted last.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 21573 of the Government Code is amended to
read:
   21573.  (a) In lieu of benefits provided in Section 21571 or
Section 21572, if the death benefit provided by Section 21532 is
payable on account of a state member's death that occurs under
circumstances other than those described in subparagraph (F) of
paragraph (1) of subdivision (a) of Section 21530, or if an allowance
under Section 21546 is payable, the payment pursuant to subdivision
(b) shall be made in the following order of priority:
   (1) The surviving wife or surviving husband of the member, who has
the care of unmarried children, including stepchildren, of the
member who are under 22 years of age, or are incapacitated because of
disability that began before and has continued without interruption
after attainment of that age.
   (2) The guardian of surviving unmarried children, including
stepchildren, of the member who are under 22 years of age or are so
incapacitated.
   (3) The surviving wife or surviving husband of the member, who
does not qualify under paragraph (1).
   (4) Each surviving parent of the member.
   (b) Regardless of the benefit provided by Section 21532 and of the
beneficiary designated by the member under that section, or
regardless of the allowance provided under Section 21546, the
following applicable 1959 survivor allowance, under the conditions
stated and from contributions of the state, shall be paid:
   (1) A surviving spouse who was either continuously married to the
member for at least one year prior to death, or who was married to
the member prior to the occurrence of the injury or onset of the
illness that resulted in death, and has the care of unmarried
children, including stepchildren, of the deceased member who are
under 22 years of age or are so incapacitated, shall be paid seven
hundred dollars ($700) per month if there is one child, or eight
hundred forty dollars ($840) per month if there are two or more
children. If there also are children who are not in the care of the
surviving spouse, the portion of the allowance payable under this
paragraph, assuming that these children were in the care of the
surviving spouse, that is in excess of three hundred fifty dollars
($350) per month, shall be divided equally among all those children
and payments made to the spouse and other children, as the case may
be.
   (2) If there is no surviving spouse, or if the surviving spouse
dies or remarries, and if there are unmarried children, including
stepchildren, of the deceased member who are under 22 years of age or
are so incapacitated, or if there are children not in the care of
the spouse, the children shall be paid an allowance as follows:
   (A) If there is only one child, the child shall be paid three
hundred fifty dollars ($350) per month.
   (B) If there are two children, the children shall be paid seven
hundred dollars ($700) per month divided equally between them.
   (C) If there are three or more children, the children shall be
paid eight hundred forty dollars ($840) per month divided equally
among them.
   (3) A surviving spouse who has attained or attains the age of 62
years, and, with respect to that surviving spouse, who was either
continuously married to the member for at least one year prior to
death, or who was married to the member prior to the occurrence of
the injury or onset of the illness that resulted in death and has not
remarried subsequent to the member's death, shall be paid three
hundred fifty dollars ($350) per month.  No allowance shall be paid
under paragraph (1), or while an allowance is being paid under
subparagraph (C) of paragraph (2).  The allowance paid under this
paragraph shall be one hundred forty dollars ($140) per month while
an allowance is being paid under subparagraph (B) of paragraph (2).
   (4) If there is no surviving spouse or surviving child who
qualifies for the 1959 survivor allowance, or if the surviving spouse
dies or remarries and there is no surviving child, or if the
surviving spouse dies or remarries and the children die or marry or,
if not incapacitated, reach 22 years of age, each of the member's
dependent parents who has attained or attains the age of 62 years,
and who received at least one-half of his or her support from the
member at the time of the member's death, shall be paid three hundred
fifty dollars ($350) per month.
   (c) "Stepchildren," for purposes of this section, shall include
only stepchildren of the member living with the member in a regular
parent-child relationship at the time of the death of the member.
   (d) This section shall apply to beneficiaries of state members
whose death occurred before January 1, 1985.  Where a surviving
spouse attained the age of 62 years prior to January 1, 1987,
entitlement shall exist retroactive to January 1, 1985, or to his or
her 62nd birthday, whichever is later.  All assets and liabilities of
all state agencies and their employees on account of benefits
provided to beneficiaries specified in this subdivision shall be
pooled into a single account.  The board shall transfer from the
reserve for 1959 survivor contributions retained in the retirement
fund an amount sufficient to pay the cost of the increased benefits
provided by this subdivision for beneficiaries of members who died on
or before December 31, 1984.
   (e) This section shall not apply to beneficiaries with respect to
the death of a state member, except as provided in subdivision (i),
occurring on or after January 1, 1985, unless provided for in a
memorandum of understanding reached pursuant to Section 3517.5, or
authorized by the Director of Personnel Administration for
classifications of state employees that are excluded from, or not
subject to, collective bargaining.  The memorandum of understanding
adopting this section shall be controlling without further
legislative action, except that if those provisions of a memorandum
of understanding require the expenditure of funds, those provisions
shall not become effective unless approved by the Legislature as
provided by law.
   (f) This section shall apply, with respect to benefits payable on
and after January 1, 1985, to school members and to school safety
members, as defined in Section 20444.  All assets and liabilities of
all school employers, and their employees, on account of benefits
provided under this article shall be pooled into a single account,
and a single employer rate shall be established to provide benefits
under this section on account of school members employed by a school
employer.
   (g) This section shall apply to members of a contracting agency
that, in its original contract or by amending its contract, first
elects effective on or after January 1, 1985, to make this article
applicable to local members employed by the agency.  On and after
January 1, 1985, contracting agencies already subject to Section
21571 or Section 21572 may elect by contract amendment to be subject
to this section.  All assets and liabilities of all contracting
agencies subject to this section, and their employees, on account of
benefits provided under this article shall be pooled into a single
account, and a single employer rate shall be established to provide
benefits under this section on account of members employed by a
contracting agency that is subject to this section.  Any public
agency first contracting with the board on and after January 1, 1994,
or any contracting agency amending its contract to remove exclusions
of member classifications on or after January 1, 1994, that has not,
pursuant to Section 418 of Title 42 of the United States Code,
entered into an agreement with the federal government for the
coverage of its employees under the federal system, shall be subject
to this section.
   (h) The rate of contribution of an employer subject to this
section shall be figured using the term insurance valuation method.
If a contracting agency that is subject to this section has a surplus
in its 1959 survivor benefit account as of the date the contracting
agency becomes subject to this section, the surplus shall be applied
to reduce its rate of contribution.  If a contracting agency that is
subject to this section has a deficit in its 1959 survivor benefit
account as of the date the contracting agency becomes subject to this
section, its rate of contribution shall be increased until the
deficit is paid.
   (i) This section shall not apply to beneficiaries with respect to
the death of a state member employed by the California State
University occurring on or after January 1, 1988, unless provided for
in a memorandum of understanding reached pursuant to Chapter 12
(commencing with Section 3560) of Division 4 of Title 1, or
authorized by the Trustees of the California State University for
employees excluded from collective bargaining.  The memorandum of
understanding shall be controlling without further legislative
action, except that if the provisions of a memorandum of
understanding require the expenditure of funds, the provisions shall
not become effective unless approved by the Legislature in the annual
Budget Act.
   (j) This section shall not apply to any member in the employ of a
contracting agency not subject to this section on and after January
1, 2000.
  SEC. 1.1.  Section 21573 of the Government Code is amended to read:

   21573.  (a) In lieu of benefits provided in Section 21571 or
Section 21572, if the death benefit provided by Section 21532 is
payable on account of a state member's death that occurs under
circumstances other than those described in subparagraph (F) of
paragraph (1) of subdivision (a) of Section 21530, or if an allowance
under Section 21546 is payable, the payment pursuant to subdivision
(b) shall be made in the following order of priority:
   (1) The surviving wife or surviving husband of the member, who has
the care of unmarried children, including stepchildren, of the
member who are under 22 years of age, or are incapacitated because of
disability that began before and has continued without interruption
after attainment of that age.
   (2) The guardian of surviving unmarried children, including
stepchildren, of the member who are under 22 years of age or are so
incapacitated.
   (3) The surviving wife or surviving husband of the member, who
does not qualify under paragraph (1).
   (4) Each surviving parent of the member.
   (b) Regardless of the benefit provided by Section 21532 and of the
beneficiary designated by the member under that section, or
regardless of the allowance provided under Section 21546, the
following applicable 1959 survivor allowance, under the conditions
stated and from contributions of the state, shall be paid:
   (1) A surviving spouse who was either continuously married to the
member for at least one year prior to death, or who was married to
the member prior to the occurrence of the injury or onset of the
illness that resulted in death, and has the care of unmarried
children, including stepchildren, of the deceased member who are
under 22 years of age or are so incapacitated, shall be paid seven
hundred dollars ($700) per month if there is one child, or eight
hundred forty dollars ($840) per month if there are two or more
children. If there also are children who are not in the care of the
surviving spouse, the portion of the allowance payable under this
paragraph, assuming that these children were in the care of the
surviving spouse, that is in excess of three hundred fifty dollars
($350) per month, shall be divided equally among all those children
and payments made to the spouse and other children, as the case may
be.
   (2) If there is no surviving spouse, or if the surviving spouse
dies, and if there are unmarried children, including stepchildren, of
the deceased member who are under 22 years of age or are so
incapacitated, or if there are children not in the care of the
spouse, the children shall be paid an allowance as follows:
   (A) If there is only one child, the child shall be paid three
hundred fifty dollars ($350) per month.
   (B) If there are two children, the children shall be paid seven
hundred dollars ($700) per month divided equally between them.
   (C) If there are three or more children, the children shall be
paid eight hundred forty dollars ($840) per month divided equally
among them.
   (3) A surviving spouse who has attained or attains the age of 62
years, and, with respect to that surviving spouse, who was either
continuously married to the member for at least one year prior to
death, or who was married to the member prior to the occurrence of
the injury or onset of the illness that resulted in death , shall be
paid three hundred fifty dollars ($350) per month.  No allowance
shall be paid under paragraph (1), or while an allowance is being
paid under subparagraph (C) of paragraph (2).  The allowance paid
under this paragraph shall be one hundred forty dollars ($140) per
month while an allowance is being paid under subparagraph (B) of
paragraph (2).
   (4) If there is no surviving spouse or surviving child who
qualifies for the 1959 survivor allowance, or if the surviving spouse
dies and there is no surviving child, or if the surviving spouse
dies and the children die or marry or, if not incapacitated, reach 22
years of age, each of the member's dependent parents who has
attained or attains the age of 62 years, and who received at least
one-half of his or her support from the member at the time of the
member's death, shall be paid three hundred fifty dollars ($350) per
month.
   (c) "Stepchildren," for purposes of this section, shall include
only stepchildren of the member living with the member in a regular
parent-child relationship at the time of the death of the member.
   (d) This section shall apply to beneficiaries of state members
whose death occurred before January 1, 1985.  Where a surviving
spouse attained the age of 62 years prior to January 1, 1987,
entitlement shall exist retroactive to January 1, 1985, or to his or
her 62nd birthday, whichever is later.  All assets and liabilities of
all state agencies and their employees on account of benefits
provided to beneficiaries specified in this subdivision shall be
pooled into a single account.  The board shall transfer from the
reserve for 1959 survivor contributions retained in the retirement
fund, an amount sufficient to pay the cost of the increased benefits
provided by this subdivision for beneficiaries of members who died on
or before December 31, 1984.
   (e) This section shall not apply to beneficiaries with respect to
the death of a state member, except as provided in subdivision (i),
occurring on or after January 1, 1985, unless provided for in a
memorandum of understanding reached pursuant to Section 3517.5, or
authorized by the Director of Personnel Administration for
classifications of state employees that are excluded from, or not
subject to, collective bargaining.  The memorandum of understanding
adopting this section shall be controlling without further
legislative action, except that if those provisions of a memorandum
of understanding require the expenditure of funds, those provisions
shall not become effective unless approved by the Legislature as
provided by law.
   (f) This section shall apply, with respect to benefits payable on
and after January 1, 1985, to school members and to school safety
members, as defined in Section 20444.  All assets and liabilities of
all school employers, and their employees, on account of benefits
provided under this article shall be pooled into a single account,
and a single employer rate shall be established to provide benefits
under this section on account of school members employed by a school
employer.
   (g) This section shall apply to members of a contracting agency
that, in its original contract  or by amending its contract, first
elects effective on or after January 1, 1985, to make this article
applicable to local members employed by the agency.  On and after
January 1, 1985, contracting agencies already subject to Section
21571 or Section 21572 may elect by contract amendment to be subject
to this section.  All assets and liabilities of all contracting
agencies subject to this section, and their employees, on account of
benefits provided under this article shall be pooled into a single
account, and a single employer rate shall be established to provide
benefits under this section on account of members employed by a
contracting agency that is subject to this section.  Any public
agency first contracting with the board on and after January 1, 1994,
or any contracting agency amending its contract to remove exclusions
of member classifications on or after January 1, 1994, that has not,
pursuant to Section 418 of Title 42 of the United States Code,
entered into an agreement with the federal government for the
coverage of its employees under the federal system, shall be subject
to this section.
   (h) The rate of contribution of an employer subject to this
section shall be figured using the term insurance valuation method.
If a contracting agency that is subject to this section has a surplus
in its 1959 survivor benefit account as of the date the contracting
agency becomes subject to this section, the surplus shall be applied
to reduce its rate of contribution.  If a contracting agency that is
subject to this section has a deficit in its 1959 survivor benefit
account as of the date the contracting agency becomes subject to this
section, its rate of contribution shall be increased until the
deficit is paid.
   (i) This section shall not apply to beneficiaries with respect to
the death of a state member employed by the California State
University occurring on or after January 1, 1988, unless provided for
in a memorandum of understanding reached pursuant to Chapter 12
(commencing with Section 3560) of Division 4 of Title 1, or
authorized by the Trustees of the California State University for
employees excluded from collective bargaining.  The memorandum of
understanding shall be controlling without further legislative
action, except that if the provisions of a memorandum of
understanding require the expenditure of funds, the provisions shall
not become effective unless approved by the Legislature in the annual
Budget Act.
   (j) This section shall not apply to any member in the employ of a
contracting agency not subject to this section on and after January
1, 2000.
  SEC. 1.2.  Section 21573 of the Government Code is amended to read:

   21573.  (a) In lieu of benefits provided in Section 21571 or
Section 21572, if the death benefit provided by Section 21532 is
payable on account of a state member's death that occurs under
circumstances other than those described in subparagraph (F) of
paragraph (1) of subdivision (a) of Section 21530, or if an allowance
under Section 21546 is payable, the payment pursuant to subdivision
(b) shall be made in the following order of priority:
   (1) The surviving wife or surviving husband of the member, who has
the care of unmarried children, including stepchildren, of the
member who are under 22 years of age, or are incapacitated because of
a disability that began before and has continued without
interruption after attainment of that age.
   (2) The guardian of surviving unmarried children, including
stepchildren, of the member who are under 22 years of age or are so
incapacitated.
   (3) The surviving wife or surviving husband of the member, who
does not qualify under paragraph (1).
   (4) Each surviving parent of the member.
   (b) Regardless of the benefit provided by Section 21532 and of the
beneficiary designated by the member under that section, or
regardless of the allowance provided under Section 21546, the
following applicable 1959 survivor allowance, under the conditions
stated and from contributions of the state, shall be paid:
   (1) A surviving spouse who was either continuously married to the
member for at least one year prior to death, or who was married to
the member prior to the occurrence of the injury or onset of the
illness that resulted in death, and has the care of unmarried
children, including stepchildren, of the deceased member who are
under 22 years of age or are so incapacitated, shall be paid seven
hundred dollars ($700) per month if there is one child, or eight
hundred forty dollars ($840) per month if there are two or more
children. If there also are children who are not in the care of the
surviving spouse, the portion of the allowance payable under this
paragraph, assuming that these children were in the care of the
surviving spouse, that is in excess of three hundred fifty dollars
($350) per month, shall be divided equally among all those children
and payments made to the spouse and other children, as the case may
be.
   (2) If there is no surviving spouse, or if the surviving spouse
dies or remarries, and if there are unmarried children, including
stepchildren, of the deceased member who are under 22 years of age or
are so incapacitated, or if there are children not in the care of
the spouse, the children shall be paid an allowance as follows:
   (A) If there is only one child, the child shall be paid three
hundred fifty dollars ($350) per month.
   (B) If there are two children, the children shall be paid seven
hundred dollars ($700) per month divided equally between them.
   (C) If there are three or more children, the children shall be
paid eight hundred forty dollars ($840) per month divided equally
among them.
   (3) A surviving spouse who has attained or attains the age of 62
years, and, with respect to that surviving spouse, who was either
continuously married to the member for at least one year prior to
death, or who was married to the member prior to the occurrence of
the injury or onset of the illness that resulted in death and has not
remarried subsequent to the member's death, shall be paid three
hundred fifty dollars ($350) per month.  No allowance shall be paid
under this paragraph while the surviving spouse is receiving an
allowance under paragraph (1) or while an allowance is being paid
under subparagraph (C) of paragraph (2).  The allowance paid under
this paragraph shall be one hundred forty dollars ($140) per month
while an allowance is being paid under subparagraph (B) of paragraph
(2).
   (4) If there is no surviving spouse or surviving child who
qualifies for the 1959 survivor allowance, or if the surviving spouse
dies or remarries and there is no surviving child, or if the
surviving spouse dies or remarries and the children die or marry or,
if not incapacitated, reach 22 years of age, each of the member's
dependent parents who has attained or attains the age of 62 years,
and who received at least one-half of his or her support from the
member at the time of the member's death, shall be paid three hundred
fifty dollars ($350) per month.
   (c) "Stepchildren," for purposes of this section, shall include
only stepchildren of the member living with the member in a regular
parent-child relationship at the time of the death of the member.
   (d) This section shall apply to beneficiaries of state members
whose death occurred before January 1, 1985.  Where a surviving
spouse attained the age of 62 years prior to January 1, 1987,
entitlement shall exist retroactive to January 1, 1985, or to his or
her 62nd birthday, whichever is later.  All assets and liabilities of
all state agencies and their employees on account of benefits
provided to beneficiaries specified in this subdivision shall be
pooled into a single account.  The board shall transfer from the
reserve for 1959 survivor contributions retained in the retirement
fund an amount sufficient to pay the cost of the increased benefits
provided by this subdivision for beneficiaries of members who died on
or before December 31, 1984.
   (e) This section shall not apply to beneficiaries with respect to
the death of a state member, except as provided in subdivision (i),
occurring on or after January 1, 1985, unless provided for in a
memorandum of understanding reached pursuant to Section 3517.5, or
authorized by the Director of Personnel Administration for
classifications of state employees that are excluded from, or not
subject to, collective bargaining.  The memorandum of understanding
adopting this section shall be controlling without further
legislative action, except that if those provisions of a memorandum
of understanding require the expenditure of funds, those provisions
shall not become effective unless approved by the Legislature as
provided by law.
   (f) This section shall apply, with respect to benefits payable on
and after January 1, 1985, to school members and to school safety
members, as defined in Section 20444.  All assets and liabilities of
all school employers, and their employees, on account of benefits
provided under this article shall be pooled into a single account,
and a single employer rate shall be established to provide benefits
under this section on account of school members employed by a school
employer.
   (g) This section shall apply to members of a contracting agency
that, in its original contract or by amending its contract, first
elects effective on or after January 1, 1985, to make this article
applicable to local members employed by the agency.  On and after
January 1, 1985, contracting agencies already subject to Section
21571 or Section 21572 may elect by contract amendment to be subject
to this section.  All assets and liabilities of all contracting
agencies subject to this section, and their employees, on account of
benefits provided under this article shall be pooled into a single
account, and a single employer rate shall be established to provide
benefits under this section on account of members employed by a
contracting agency that is subject to this section.  Any public
agency first contracting with the board on and after January 1, 1994,
or any contracting agency amending its contract to remove exclusions
of member classifications on or after January 1, 1994, that has not,
pursuant to Section 418 of Title 42 of the United States Code,
entered into an agreement with the federal government for the
coverage of its employees under the federal system, shall be subject
to this section.
   (h) The rate of contribution of an employer subject to this
section shall be figured using the term insurance valuation method.
If a contracting agency that is subject to this section has a surplus
in its 1959 survivor benefit account as of the date the contracting
agency becomes subject to this section, the surplus shall be applied
to reduce its rate of contribution.  If a contracting agency that is
subject to this section has a deficit in its 1959 survivor benefit
account as of the date the contracting agency becomes subject to this
section, its rate of contribution shall be
                   increased until the deficit is paid.
   (i) This section shall not apply to beneficiaries with respect to
the death of a state member employed by the California State
University occurring on or after January 1, 1988, unless provided for
in a memorandum of understanding reached pursuant to Chapter 12
(commencing with Section 3560) of Division 4 of Title 1, or
authorized by the Trustees of the California State University for
employees excluded from collective bargaining.  The memorandum of
understanding shall be controlling without further legislative
action, except that if the provisions of a memorandum of
understanding require the expenditure of funds, the provisions shall
not become effective unless approved by the Legislature in the annual
Budget Act.
   (j) This section shall not apply to any member in the employ of a
contracting agency not subject to this section on and after January
1, 2000.
   (k) On and after January 1, 2000, and until January 1, 2010, all
state and school members covered by this section shall be covered by
the benefit provided under Section 21574.7.  On and after January 1,
2010, all state and school members not covered by Section 21572 or
21574.7 shall be covered by this section.
  SEC. 1.3.  Section 21573 of the Government Code is amended to read:

   21573.  (a) In lieu of benefits provided in Section 21571 or
Section 21572, if the death benefit provided by Section 21532 is
payable on account of a state member's death that occurs under
circumstances other than those described in subparagraph (F) of
paragraph (1) of subdivision (a) of Section 21530, or if an allowance
under Section 21546 is payable, the payment pursuant to subdivision
(b) shall be made in the following order of priority:
   (1) The surviving wife or surviving husband of the member, who has
the care of unmarried children, including stepchildren, of the
member who are under 22 years of age, or are incapacitated because of
a disability that began before and has continued without
interruption after attainment of that age.
   (2) The guardian of surviving unmarried children, including
stepchildren, of the member who are under 22 years of age or are so
incapacitated.
   (3) The surviving wife or surviving husband of the member, who
does not qualify under paragraph (1).
   (4) Each surviving parent of the member.
   (b) Regardless of the benefit provided by Section 21532 and of the
beneficiary designated by the member under that section, or
regardless of the allowance provided under Section 21546, the
following applicable 1959 survivor allowance, under the conditions
stated and from contributions of the state, shall be paid:
   (1) A surviving spouse who was either continuously married to the
member for at least one year prior to death, or who was married to
the member prior to the occurrence of the injury or onset of the
illness that resulted in death, and has the care of unmarried
children, including stepchildren, of the deceased member who are
under 22 years of age or are so incapacitated, shall be paid seven
hundred dollars ($700) per month if there is one child, or eight
hundred forty dollars ($840) per month if there are two or more
children.  If there also are children who are not in the care of the
surviving spouse, the portion of the allowance payable under this
paragraph, assuming that these children were in the care of the
surviving spouse, that is in excess of three hundred fifty dollars
($350) per month, shall be divided equally among all those children
and payments made to the spouse and other children, as the case may
be.
   (2) If there is no surviving spouse, or if the surviving spouse
dies , and if there are unmarried children, including stepchildren,
of the deceased member who are under 22 years of age or are so
incapacitated, or if there are children not in the care of the
spouse, the children shall be paid an allowance as follows:
   (A) If there is only one child, the child shall be paid three
hundred fifty dollars ($350) per month.
   (B) If there are two children, the children shall be paid seven
hundred dollars ($700) per month divided equally between them.
   (C) If there are three or more children, the children shall be
paid eight hundred forty dollars ($840) per month divided equally
among them.
   (3) A surviving spouse who has attained or attains the age of 62
years, and, with respect to that surviving spouse, who was either
continuously married to the member for at least one year prior to
death, or who was married to the member prior to the occurrence of
the injury or onset of the illness that resulted in death , shall be
paid three hundred fifty dollars ($350) per month.  No allowance
shall be paid under this paragraph while the surviving spouse is
receiving an allowance under paragraph (1) or while an allowance is
being paid under subparagraph (C) of paragraph (2).  The allowance
paid under this paragraph shall be one hundred forty dollars ($140)
per month while an allowance is being paid under subparagraph (B) of
paragraph (2).
   (4) If there is no surviving spouse or surviving child who
qualifies for the 1959 survivor allowance, or if the surviving spouse
dies and there is no surviving child, or if the surviving spouse
dies and the children die or marry or, if not incapacitated, reach 22
years of age, each of the member's dependent parents who has
attained or attains the age of 62 years, and who received at least
one-half of his or her support from the member at the time of the
member's death, shall be paid three hundred fifty dollars ($350) per
month.
   (c) "Stepchildren," for purposes of this section, shall include
only stepchildren of the member living with the member in a regular
parent-child relationship at the time of the death of the member.
   (d) This section shall apply to beneficiaries of state members
whose death occurred before January 1, 1985.  Where a surviving
spouse attained the age of 62 years prior to January 1, 1987,
entitlement shall exist retroactive to January 1, 1985, or to his or
her 62nd birthday, whichever is later.  All assets and liabilities of
all state agencies and their employees on account of benefits
provided to beneficiaries specified in this subdivision shall be
pooled into a single account.  The board shall transfer from the
reserve for 1959 survivor contributions retained in the retirement
fund an amount sufficient to pay the cost of the increased benefits
provided by this subdivision for beneficiaries of members who died on
or before December 31, 1984.
   (e) This section shall not apply to beneficiaries with respect to
the death of a state member, except as provided in subdivision (i),
occurring on or after January 1, 1985, unless provided for in a
memorandum of understanding reached pursuant to Section 3517.5, or
authorized by the Director of Personnel Administration for
classifications of state employees that are excluded from, or not
subject to, collective bargaining.  The memorandum of understanding
adopting this section shall be controlling without further
legislative action, except that if those provisions of a memorandum
of understanding require the expenditure of funds, those provisions
shall not become effective unless approved by the Legislature as
provided by law.
   (f) This section shall apply, with respect to benefits payable on
and after January 1, 1985, to school members and to school safety
members, as defined in Section 20444.  All assets and liabilities of
all school employers, and their employees, on account of benefits
provided under this article shall be pooled into a single account,
and a single employer rate shall be established to provide benefits
under this section on account of school members employed by a school
employer.
   (g) This section shall apply to members of a contracting agency
that, in its original contract or by amending its contract, first
elects effective on or after January 1, 1985, to make this article
applicable to local members employed by the agency.  On and after
January 1, 1985, contracting agencies already subject to Section
21571 or Section 21572 may elect by contract amendment to be subject
to this section.  All assets and liabilities of all contracting
agencies subject to this section, and their employees, on account of
benefits provided under this article shall be pooled into a single
account, and a single employer rate shall be established to provide
benefits under this section on account of members employed by a
contracting agency that is subject to this section.  Any public
agency first contracting with the board on and after January 1, 1994,
or any contracting agency amending its contract to remove exclusions
of member classifications on or after January 1, 1994, that has not,
pursuant to Section 418 of Title 42 of the United States Code,
entered into an agreement with the federal government for the
coverage of its employees under the federal system, shall be subject
to this section.
   (h) The rate of contribution of an employer subject to this
section shall be figured using the term insurance valuation method.
If a contracting agency that is subject to this section has a surplus
in its 1959 survivor benefit account as of the date the contracting
agency becomes subject to this section, the surplus shall be applied
to reduce its rate of contribution.  If a contracting agency that is
subject to this section has a deficit in its 1959 survivor benefit
account as of the date the contracting agency becomes subject to this
section, its rate of contribution shall be increased until the
deficit is paid.
   (i) This section shall not apply to beneficiaries with respect to
the death of a state member employed by the California State
University occurring on or after January 1, 1988, unless provided for
in a memorandum of understanding reached pursuant to Chapter 12
(commencing with Section 3560) of Division 4 of Title 1, or
authorized by the Trustees of the California State University for
employees excluded from collective bargaining.  The memorandum of
understanding shall be controlling without further legislative
action, except that if the provisions of a memorandum of
understanding require the expenditure of funds, the provisions shall
not become effective unless approved by the Legislature in the annual
Budget Act.
   (j) This section shall not apply to any member in the employ of a
contracting agency not subject to this section on and after January
1, 2000.
   (k) On and after January 1, 2000, and until January 1, 2010, all
state and school members covered by this section shall be covered by
the benefit provided under Section 21574.7.  On and after January 1,
2010, all state and school members not covered by Section 21572 or
21574.7 shall be covered by this section.
  SEC. 2.  Section 21574 of the Government Code is amended to read:
   21574.  (a) In lieu of benefits provided in Section 21571, 21572,
or 21573, if the death benefit provided by Section 21532 is payable
on account of a local member's death that occurs under circumstances
other than those described in subparagraph (F) of paragraph (1) of
subdivision (a) of Section 21530, or if an allowance under Section
21546 is payable, the payment pursuant to subdivision (b) shall be
made in the following order of priority:
   (1) The surviving spouse of the member, who has the care of
unmarried children, including stepchildren, of the member who are
under 22 years of age, or are incapacitated because of disability
that began before and has continued without interruption after the
attainment of that age.
   (2) The guardian of surviving unmarried children, including
stepchildren, of the member who are 22 years of age or are so
incapacitated.
   (3) The surviving spouse of the member, who does not qualify under
paragraph (1).
   (4) Each surviving parent of the member.
   (b) Regardless of the benefit provided by Section 21532 and of the
beneficiary designated by the member under that section, or
regardless of the allowance provided under Section 21546, the
following applicable 1959 survivor allowance, under the conditions
stated and from contributions of the contracting agency, shall be
paid:
   (1) A surviving spouse who was either continuously married to the
member for at least one year prior to death, or was married to the
member prior to the occurrence of the injury or onset of the illness
that resulted in death, and has the care of unmarried children,
including stepchildren, of the deceased member who are under 22 years
of age or are so incapacitated, shall be paid one thousand nine
hundred dollars ($1,900) per month if there is one child or two
thousand two hundred eighty dollars ($2,280) per month if there are
two or more children.  If there also are children who are not in the
care of the surviving spouse, the portion of the allowance payable
under this paragraph, assuming that these children were in the care
of the surviving spouse, that is in excess of nine hundred fifty
dollars ($950) per month, shall be divided equally among all those
children and payments made to the spouse and other children, as the
case may be.
   (2) If there is no surviving spouse, or if the surviving spouse
dies or remarries, and if there are unmarried children, including
stepchildren, of the deceased member who are under 22 years of age or
are so incapacitated, or if there are children not in the care of
the spouse, the children shall be paid an allowance as follows:
   (A) If there is only one child, the child shall be paid nine
hundred fifty dollars ($950) per month.
   (B) If there are two children, the children shall be paid one
thousand nine hundred dollars ($1,900) per month divided equally
between them.
   (C) If there are three or more children, the children shall be
paid two thousand two hundred eighty dollars ($2,280) per month
divided equally among them.
   (3) A surviving spouse who has attained or attains the age of 60
years, and who was either continuously married to the member for at
least one year prior to death, or was married to the member prior to
the occurrence of the injury or onset of the illness that resulted in
death and has not remarried subsequent to the member's death, shall
be paid nine hundred fifty dollars ($950) per month.  No allowance
shall be paid under paragraph (1), or while an allowance is being
paid under subparagraph (C) of paragraph (2).  The allowance paid
under this paragraph shall be three hundred eighty dollars ($380) per
month while an allowance is being paid under subparagraph (B) of
paragraph (2).
   (4) If there is no surviving spouse or surviving child who
qualifies for the 1959 survivor allowance, or if the surviving spouse
dies or remarries and there is no surviving child, or if the
surviving spouse dies or remarries and the children die or marry or,
if not incapacitated, reach 22 years of age, each of the member's
dependent parents who has attained or attains the age of 60 years,
and who received at least one-half of his or her support from the
member at the time of the member's death, shall be paid nine hundred
fifty dollars ($950) per month.
   (c) "Stepchildren," for purposes of this section, shall include
only stepchildren of the member living with the member in a regular
parent-child relationship at the time of the death of the member.
   (d) This section shall only apply to members of a contracting
agency that, by amending its contract, first elects effective on or
after January 1, 1994, to make this section applicable to local
members employed by the agency.  On and after January 1, 1994,
contracting agencies already subject to Section 21571, 21572, or
21573 may elect by contract amendment to be subject to this section.
Notwithstanding Section 21573, a public agency first contracting
with the board on and after January 1, 1994, may include this section
in its contract.  All assets and liabilities of all contracting
agencies subject to this section, and their employees, on account of
benefits provided under this article shall be pooled into a single
account, and a single employer rate shall be established to provide
benefits under this section on account of members employed by a
contracting agency that is subject to this section.
   (e) The rate of contribution of an employer subject to this
section shall be calculated using the term insurance valuation
method.  If a contracting agency that is subject to this section has
a surplus in its 1959 survivor benefit account as of the date the
contracting agency becomes subject to this section, the surplus shall
be applied to reduce its rate of contribution.  If a contracting
agency that is subject to this section has a deficit in its 1959
survivor benefit account as of the date the contracting agency
becomes subject to this section, its rate of contribution shall be
increased until the deficit is paid.
   (f) This section shall not apply to any member in the employ of a
contracting agency not subject to this section at the time the single
beneficiary benefit level of Section 21574.5 exceeds the single
beneficiary benefit level of Section 21574.
  SEC. 2.1.  Section 21574 of the Government Code is amended to read:

   21574.  (a) In lieu of benefits provided in Section 21571, 21572,
or 21573, if the death benefit provided by Section 21532 is payable
on account of a local member's death that occurs under circumstances
other than those described in subparagraph (F) of paragraph (1) of
subdivision (a) of Section 21530, or if an allowance under Section
21546 is payable, the payment pursuant to subdivision (b) shall be
made in the following order of priority:
   (1) The surviving spouse of the member, who has the care of
unmarried children, including stepchildren, of the member who are
under 22 years of age, or are incapacitated because of disability
that began before and has continued without interruption after the
attainment of that age.
   (2) The guardian of surviving unmarried children, including
stepchildren, of the member who are 22 years of age or are so
incapacitated.
   (3) The surviving spouse of the member, who does not qualify under
paragraph (1).
   (4) Each surviving parent of the member.
   (b) Regardless of the benefit provided by Section 21532 and of the
beneficiary designated by the member under that section, or
regardless of the allowance provided under Section 21546, the
following applicable 1959 survivor allowance, under the conditions
stated and from contributions of the contracting agency, shall be
paid:
   (1) A surviving spouse who was either continuously married to the
member for at least one year prior to death, or was married to the
member prior to the occurrence of the injury or onset of the illness
that resulted in death, and has the care of unmarried children,
including stepchildren, of the deceased member who are under 22 years
of age or are so incapacitated, shall be paid one thousand nine
hundred dollars ($1,900) per month if there is one child or two
thousand two hundred eighty dollars ($2,280) per month if there are
two or more children.  If there also are children who are not in the
care of the surviving spouse, the portion of the allowance payable
under this paragraph, assuming that these children were in the care
of the surviving spouse, that is in excess of nine hundred fifty
dollars ($950) per month, shall be divided equally among all those
children and payments made to the spouse and other children, as the
case may be.
   (2) If there is no surviving spouse, or if the surviving spouse
dies, and if there are unmarried children, including stepchildren, of
the deceased member who are under 22 years of age or are so
incapacitated, or if there are children not in the care of the
spouse, the children shall be paid an allowance as follows:
   (A) If there is only one child, the child shall be paid nine
hundred fifty dollars ($950) per month.
   (B) If there are two children, the children shall be paid one
thousand nine hundred dollars ($1,900) per month divided equally
between them.
   (C) If there are three or more children, the children shall be
paid two thousand two hundred eighty dollars ($2,280) per month
divided equally among them.
   (3) A surviving spouse who has attained or attains the age of 60
years, and who was either continuously married to the member for at
least one year prior to death, or was married to the member prior to
the occurrence of the injury or onset of the illness that resulted in
death , shall be paid nine hundred fifty dollars ($950) per month.
No allowance shall be paid under paragraph (1), or while an allowance
is being paid under subparagraph (C) of paragraph (2).  The
allowance paid under this paragraph shall be three hundred eighty
dollars ($380) per month while an allowance is being paid under
subparagraph (B) of paragraph (2).
   (4) If there is no surviving spouse or surviving child who
qualifies for the 1959 survivor allowance, or if the surviving spouse
dies and there is no surviving child, or if the surviving spouse
dies and the children die or marry or, if not incapacitated, reach 22
years of age, each of the member's dependent parents who has
attained or attains the age of 60 years, and who received at least
one-half of his or her support from the member at the time of the
member's death, shall be paid nine hundred fifty dollars ($950) per
month.
   (c) "Stepchildren," for purposes of this section, shall include
only stepchildren of the member living with the member in a regular
parent-child relationship at the time of the death of the member.
   (d) This section shall only apply to members of a contracting
agency that, by amending its contract, first elects effective on or
after January 1, 1994, to make this section applicable to local
members employed by the agency.  On and after January 1, 1994,
contracting agencies already subject to Section 21571, 21572, or
21573 may elect by contract amendment to be subject to this section.
Notwithstanding Section 21573, a public agency first contracting
with the board on and after January 1, 1994, may include this section
in its contract.  All assets and liabilities of all contracting
agencies subject to this section, and their employees, on account of
benefits provided under this article shall be pooled into a single
account, and a single employer rate shall be established to provide
benefits under this section on account of members employed by a
contracting agency  that is subject to this section.
   (e) The rate of contribution of an employer subject to this
section shall be calculated using the term insurance valuation
method.  If a contracting agency that is subject to this section has
a surplus in its 1959 survivor benefit account as of the date the
contracting agency becomes subject to this section, the surplus shall
be applied to reduce its rate of contribution.  If a contracting
agency that is subject to this section has a deficit in its 1959
survivor benefit account as of the date the contracting agency
becomes subject to this section, its rate of contribution shall be
increased until the deficit is paid.
   (f) This section shall not apply to any member in the employ of a
contracting agency not subject to this section at the time the single
beneficiary benefit level of Section 21574.5 exceeds the single
beneficiary benefit level of Section 21574.
  SEC. 3.  Section 21574.5 is added to the Government Code, to read:

   21574.5.  (a) In lieu of benefits provided in Section 21571,
21572, 21573, or 21574, if the death benefit provided by Section
21532 is payable on account of a local member's death that occurs
under circumstances other than those described in subparagraph (F) of
paragraph (1) of subdivision (a) of Section 21530, or if an
allowance under Section 21546 is payable, the payment pursuant to
subdivision (b) shall be made in the following order of priority:
   (1) The surviving spouse of the member, who has the care of
unmarried children, including stepchildren, of the member who are
under 22 years of age, or are incapacitated because of disability
that began before and has continued without interruption after the
attainment of that age.
   (2) The guardian of surviving unmarried children, including
stepchildren, of the member who are 22 years of age or are so
incapacitated.
   (3) The surviving spouse of the member, who does not qualify under
paragraph (1).
   (4) Each surviving parent of the member.
   (b) Regardless of the benefit provided by Section 21532 and of the
beneficiary designated by the member under that section, or
regardless of the allowance provided under Section 21546, the
following applicable 1959 survivor allowance, under the conditions
stated and from contributions of the contracting agency, shall be
paid:
   (1) A surviving spouse who was either continuously married to the
member for at least one year prior to death, or was married to the
member prior to the occurrence of the injury or onset of the illness
that resulted in death, and has the care of unmarried children,
including stepchildren, of the deceased member who are under 22 years
of age or are so incapacitated, shall be paid one thousand dollars
($1,000) per month if there is one child or one thousand five hundred
dollars ($1,500) per month if there are two or more children.  If
there also are children who are not in the care of the surviving
spouse, the portion of the allowance payable under this paragraph,
assuming that these children were in the care of the surviving
spouse, that is in excess of five hundred dollars ($500) per month,
shall be divided equally among all those children and payments made
to the spouse and other children, as the case may be.
   (2) If there is no surviving spouse, or if the surviving spouse
dies, and if there are unmarried children, including stepchildren, of
the deceased member who are under 22 years of age or are so
incapacitated, or if there are children not in the care of the
spouse, the children shall be paid an allowance as follows:
   (A) If there is only one child, the child shall be paid five
hundred dollars ($500) per month.
   (B) If there are two children, the children shall be paid one
thousand dollars ($1,000) per month divided equally between them.
   (C) If there are three or more children, the children shall be
paid one thousand five hundred dollars ($1,500) per month divided
equally among them.
   (3) A surviving spouse who has attained or attains the age of 60
years, and who was either continuously married to the member for at
least one year prior to death, or was married to the member prior to
the occurrence of the injury or onset of the illness that resulted in
death, shall be paid five hundred dollars ($500) per month.  No
allowance shall be paid under paragraph (1), or while an allowance is
being paid under
subparagraph (C) of paragraph (2).  The allowance paid under this
paragraph shall be five hundred dollars ($500) per month while an
allowance is being paid under subparagraph (B) of paragraph (2).
   (4) If there is no surviving spouse or surviving child who
qualifies for the 1959 survivor allowance, or if the surviving spouse
dies and there is no surviving child, or if the surviving spouse
dies and the children die or marry or, if not incapacitated, reach 22
years of age, each of the member's dependent parents who has
attained or attains the age of 60 years, and who received at least
one-half of his or her support from the member at the time of the
member's death, shall be paid five hundred dollars ($500) per month.

   (c) "Stepchildren," for purposes of this section, shall include
only stepchildren of the member living with the member in a regular
parent-child relationship at the time of the death of the member.
   (d) This section shall only apply to members of a contracting
agency that, by amending its contract, first elects on or after
January 1, 2000, to make this section applicable to local members
employed by the agency.  On and after January 1, 2000, contracting
agencies already subject to Section 21571, 21572, or 21573 may elect
by contract amendment to be subject to this section.  All assets and
liabilities of all contracting agencies subject to this section, and
their employees, on account of benefits provided under this article
shall be pooled into a single account, and a single employer rate
shall be established to provide benefits under this section on
account of members employed by a contracting agency that is subject
to this section.
   (e) The rate of contribution of an employer subject to this
section shall be calculated using a method determined by the board.
If the contracting agency that is subject to this section has a
surplus in its 1959 survivor benefit account as of the date the
contracting agency becomes subject to this section, the surplus shall
be applied to reduce its rate of contribution.  If a contracting
agency that is subject to this section has a deficit in its 1959
survivor benefit account as of the date the contracting agency
becomes subject to this section, its rate of contribution shall be
increased until the deficit is paid.
   (f) In each subsequent year following the enactment of this
section, the benefits prescribed by this section shall be indexed at
a rate of 2 percent per year for both beneficiaries already receiving
the benefit and for potential beneficiaries of members who die in
the future.
  SEC. 4.  Section 21581 of the Government Code is amended to read:
   21581.  (a) The rate of contribution of a member subject to this
article shall include, in addition to his or her normal rate, two
dollars ($2) per month or fraction thereof, or ninety-three cents
($0.93) for each biweekly payroll period or fraction thereof, where
salaries are paid on that basis.  Those contributions shall not
become a part of a member's accumulated contributions or be treated
or administered as normal contributions and shall not be refundable
to a member under any circumstances.  Those contributions shall be
available only for payment of 1959 survivor allowances.
   (b) Notwithstanding subdivision (a), the total required monthly
premium for Section 21574.5, as determined by the board, shall be
offset by the uniform amortization of surplus assets within this
account.  If the total monthly premium is equal to, or less than,
four dollars ($4), the member contribution portion shall be two
dollars ($2) per month and the employer shall pay the difference, if
any.  If the total monthly premium required exceeds four dollars
($4), the member and the employer shall evenly share the total
required monthly premium.
  SEC. 4.1.  Section 21581 of the Government Code is amended to read:

   21581.  (a) The rate of contribution of a member subject to this
article shall include, in addition to his or her normal rate, two
dollars ($2) per month or fraction thereof, or ninety-three cents
($0.93) for each biweekly payroll period or fraction thereof, where
salaries are paid on that basis.  Those contributions shall not
become a part of a member's accumulated contributions or be treated
or administered as normal contributions and shall not be refundable
to a member under any circumstances.  Those contributions shall be
available only for payment of 1959 survivor allowances.
   (b) Notwithstanding subdivision (a), the total required monthly
premium for Section 21574.5, as determined by the board, shall be
offset by the uniform amortization of surplus assets within this
account.  If the total monthly premium is equal to, or less than,
four dollars ($4), the member contribution portion shall be two
dollars ($2) per month and the employer shall pay the difference, if
any.  If the total monthly premium required exceeds four dollars
($4), the member and the employer shall evenly share the total
required monthly premium.
   (c) Notwithstanding subdivision (a), the total monthly premium
required for Section 21574.7, as determined by the board, shall be
offset by the uniform amortization of surplus assets within this
account.  Member contributions shall be two dollars ($2) per month
until such time as the future required monthly premium exceeds four
dollars ($4), and the employer shall pay the difference between the
total required monthly premium and the member's contribution.  Once
the total required monthly premium exceeds four dollars ($4), the
member and the employer shall evenly share the required monthly
premium.
  SEC. 5.  (a) Section 1.1 of this bill incorporates amendments to
Section 21573 of the Government Code proposed by both this bill and
AB 232.  It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 2000, (2) each bill
amends Section 21573 of the Government Code, and (3) SB 400 is not
enacted or as enacted does not amend that section, and (4) this bill
is enacted after AB 232, in which case Sections 1, 1.2, and 1.3 of
this bill shall not become operative.
   (b) Section 1.2 of this bill incorporates amendments to Section
21573 of the Government Code proposed by both this bill and SB 400.
It shall only become operative if (1) both bills are enacted and
become effective on or before January 1, 2000, (2) each bill amends
Section 21573 of the Government Code, (3) AB 232 is not enacted or as
enacted does not amend that section, and (4) this bill is enacted
after SB 400 in which case Sections 1, 1.1, and 1.3 of this bill
shall not become operative.
   (c) Section 1.3 of this bill incorporates amendments to Section
21573 of the Government Code proposed by this bill, AB 232, and SB
400.  It shall only become operative if (1) all three bills are
enacted and become effective on or before January 1, 2000, (2) all
three bills amend Section 21573 of the Government Code, and (3) this
bill is enacted after AB 232 and SB 400, in which case Sections 1,
1.1, and 1.2 of this bill shall not become operative.
  SEC. 6.  Section 2.1 of this bill incorporates amendments to
Section 21574 of the Government Code proposed by both this bill and
AB 232.  It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 2000, (2) each bill
amends Section 21574 of the Government Code, and (3) this bill is
enacted after AB 232, in which case Section 2 of this bill shall not
become operative.
  SEC. 7.  Section 4.1 of this bill incorporates amendments to
Section 21581 of the Government Code proposed by both this bill and
SB 400.  It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 2000, (2) each bill
amends Section 21581 of the Government Code, and (3) this bill is
enacted after SB 400, in which case Section 4 of this bill shall not
become operative.
